What changed
RBI has forwarded a new consolidated list of individuals and entities linked to Al-Qaida and Taliban, as updated by the UN Security Council's 1267 Committee via a Government of India note dated July 12, 2010. Banks must replace the previous list circulated on July 20, 2010, with this updated version.
What it means for you
Co-operative banks must immediately update their internal databases with the latest UN sanctions list and ensure no new account is opened for any listed entity. Existing accounts must be scanned to identify and freeze any linked accounts, following the procedures under the UAPA Order of August 27, 2009.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest UN 1267 Committee list received from RBI.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Freeze funds, financial assets, or economic resources of designated entities as per paragraph 6 of RBI's October 29, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office through the Compliance Officer/Principal Officer.
Who it affects
All State Co-operative Banks, All Central Co-operative Banks, Compliance Officers and Principal Officers of co-operative banks
Where can I find the complete updated list of terrorist individuals/entities?
The complete consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. RBI has also enclosed a copy of the Government of India note with the changes.
What action is required for existing accounts that match the list?
You must freeze all funds, financial assets, or economic resources held in bank accounts of designated individuals/entities, following the procedure detailed in paragraph 6 of RBI's circular dated October 29, 2009.
Do I need to report compliance to RBI?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office.